Gov. M. Jodi Rell’s veto of a bill that would have allowed three additional off-track betting sites to open in Connecticut has left some lawmakers and business owners scratching their head.
“For her to veto this bill, it’s outrageous,” said Rep. Ernest Hewett, a Democrat from New London, who was a co-sponsor of the legislation. “I don’t understand how someone who was pushing Keno earlier this year to try to balance the budget comes back at the end of the year and vetoes this bill.”
Hewett called Rell’s veto one of the most surprising things he’s seen in his career as a state lawmaker, and he hopes legislators can override it during the upcoming special session.
Business interests and various local and state officials are working to see if there are enough votes to make that happen.
Top Democratic officials say, however, they aren’t sure if there will be enough support to override the veto, and it may never even come up for debate.
The special session begins June 21.
The vetoed bill would have allowed three bars and restaurants in Manchester, New London and Windham, to add screens in their establishments for the simulcasting of off-track betting (OTB) races and jai alai matches.
Restaurant owners were hoping the extra income would help boost sagging revenues that have taken a hit during the recession. All three towns have already given their blessing to the betting sites, and each stood to receive about $65,000 from the gambling revenues.
The state was expected to receive about $250,000 annually from the new business. A dozen OTB establishments exist in the state, and up to 18 can legally exist. Four OTB sites have opened since 2007, a recent spike that raised concerns for Rell who said it “is a worrisome and growing trend.”
“I am troubled that these authorizations are being requested for particular restaurants or venues as quick fixes to a difficult economic climate and to offset low customer counts,” Rell said in her veto message. “We cannot amend our statues every time a restaurant owner complains that business has been down. Permitting additional screens to simulcast horse races and jai alai is neither a viable life-line for Connecticut businesses, nor the answer to an ailing economy.”
Lawmakers like Hewett were blindsided by the veto because Rell signed a similar bill last year that allowed OTB sites at a restaurant in Putnam and in Milford.
Rell was also the driving force behind a proposal earlier this year to legalize Keno. Under the plan, the bingo-type game would be installed at 600 to 1,000 bars and restaurants throughout the state, which was estimated to generate up to $60 million in state revenue.
But that proposal received fierce resistance from Connecticut’s casinos — the Mohegan Sun and Foxwoods — which viewed the legalization of Keno as a direct form of competition.
The casinos also warned that legalizing the game would violate the compact the tribes have with the state that requires paying the state hundreds of millions of dollars in slot-machine revenues.
The Keno proposal eventually died. Hewett said he is not sure if the OTB veto was politically motivated, and, if it was, he’s not sure why. While some Democrats pushed back against Rell’s efforts to legalize Keno, he said he was a supporter of the measure.
Hewett said the OTB bill would have helped create up to 30 jobs, provide much needed revenue sources to three small businesses and also provide tax dollars for state and local governments.
State Rep. Stephen Dargan, D-West Haven, who is co-chair of the public safety and security committee, which oversees gambling issues, said the veto will hurt the local economy and doesn’t make good economic sense.
When asked if he thought the casino’s pressured Rell to veto the measure, Dargan said he didn’t think so. “They didn’t have a problem with it to the best of my knowledge,” he said.
Rell, through a spokesperson, declined to comment on the bill beyond her veto statement.
Another concern she did raise was that the legislation was piecemeal policymaking that the state should not engage in to spur economic growth. “Rather, we must develop innovative and all-encompassing solutions intended to promote economic development across the state,” Rell said.
The big losers in the veto are three local bars and restaurants and New Haven-based Autotote, which runs OTB sites in Connecticut. Autotote, which is owned by New York-based Scientific Games Corp., pays to refurbish bars and restaurants and pays a monthly rent, in exchange for the gaming revenue.
The company promises towns about $65,000 in revenue each year, based on a $4 million handle estimate per parlor.
In a statement the company said it was “disappointed” and “surprised” by the veto.
“Considering that the local governmental boards were in favor, it is dismaying that the governor would reject their efforts to grow their local economies,” the company said.
Owners of the Thirsty Frog in Willimantic have said publicly that they may close their restaurant as a result of the veto.
Meanwhile, Jack Maloney, a co-owner of Shea’s American Bar & Grill in Manchester, hoped off-track betting would revive his daytime business. He said the restaurant will continue to stay open during the day for the summer, but after that they will have to reassess the business.
Maloney said he doesn’t know why Rell vetoed the bill and said the state is going to suffer because of it.
“It’s a sad day for everyone,” Maloney said.
